Does entrepreneurial experience always promote novelty-centered business model design in new venture?

Purpose: This paper aims to explore how intra-industry entrepreneurial experience and failure entrepreneurial experience affect novelty-centered business model design in a new venture. Moreover, the authors also consider whether the contingent value of entrepreneurial experience may differ according to competitive intensity. Design/methodology/approach: A survey via questionnaire was conducted with 290 entrepreneurs and top managers from Chinese new ventures that provided the research data. Hierarchical regression analysis was used to test the proposed theoretical hypotheses. Findings: The empirical results indicate that intra-industry entrepreneurial experience has an inverted U-shaped effect on novelty-centered business model design, whereas failure entrepreneurial experience has a negative effect on novelty-centered business model design. Furthermore, the authors also find that competitive intensity weakens the inverted U-shaped effect of intra-industry entrepreneurial experience on novelty-centered business model design. Originality/value: This study offers new insights into the effects of intra-industry entrepreneurial experience and failure entrepreneurial experience on novelty-centered business model design and provides useful suggestions for new ventures to promote business model design.